IShares Transportation Correlations

Etfs . USA . 
Etf . iShares Transportation Average
IYT Etf  USD 65.30  0.26  0.40%   
The current 90-days correlation between iShares Transportation and iShares Telecommunications ETF is 0.5 (i.e., Very weak diversification). The correlation of IShares Transportation is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak. If the correlation is 0, the equities are not correlated; they are entirely random.

IShares Transportation Correlation With Market

Poor diversification

The correlation between iShares Transportation Average and DJI is 0.68 (i.e., Poor diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding iShares Transportation Average and DJI in the same portfolio, assuming nothing else is changed.
  
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in iShares Transportation Average. Also, note that the market value of any etf could be closely tied with the direction of predictive economic indicators such as signals in manufacturing.

Moving together with IShares Etf

  0.8XLI Industrial Select SectorPairCorr
  0.89VIS Vanguard IndustrialsPairCorr
  0.86JETS US Global JetsPairCorr
  0.85FXR First Trust IndustriPairCorr
  0.9IYJ iShares Industrials ETFPairCorr
  0.87FIDU Fidelity MSCI IndustrialsPairCorr
  0.68WGMI Valkyrie Bitcoin MinersPairCorr
  0.91HD Home DepotPairCorr
  0.86BAC Bank of AmericaPairCorr
  0.74DIS Walt DisneyPairCorr
  0.64CAT CaterpillarPairCorr

Moving against IShares Etf

  0.61TRV The Travelers CompaniesPairCorr
  0.54PMBS PIMCO Mortgage BackedPairCorr
  0.47DRVN Driven Brands HoldingsPairCorr
  0.47AMPD Tidal Trust IIPairCorr
  0.38FXY Invesco CurrencySharesPairCorr
  0.32GDXU MicroSectors Gold MinersPairCorr
  0.49VZ Verizon Communications Aggressive PushPairCorr
  0.38JNJ Johnson JohnsonPairCorr
  0.35KO Coca Cola Aggressive PushPairCorr
  0.33XOM Exxon Mobil Corp Earnings Call This WeekPairCorr
  0.33MCD McDonaldsPairCorr
  0.32T ATT Inc Aggressive PushPairCorr

Related Correlations Analysis

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Correlation Matchups

Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
IYC
+ 0.89
IYJ
IYR
+ 0.81
IYZ
IYM
+ 0.79
IYZ
IYR
+ 0.72
IYM
IYJ
+ 0.54
IYM
IYJ
+ 0.53
IYZ
  
High negative correlations   
IYR
- 0.05
IYC

IShares Transportation Constituents Risk-Adjusted Indicators

There is a big difference between IShares Etf performing well and IShares Transportation ETF doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze IShares Transportation's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.

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